Document Type
Report
Key Takeaways
• CEO sensitivity to pay type changes with tenure. • The value of performance-based compensation declines with CEO tenure. For the first three years of a CEO’s tenure, stock options are positively related to firm performance • The benefits of salary based pay increases with CEO tenure. For the first nine years salary is negatively associated with shareholder return, however after twelve years, the CEO’s salary is positively associated with firm performance.
Publication Date
2015
Source
Hou, W., Priem, R. L., Goranova, M. (In press). Does one size fit all? Investigating pay-future performance relationships over the “Seasons” of CEO tenure. Journal of Management, In Press.
Disciplines
Business
Copyright
© 2015, University of South Carolina
Publication Info
Hou, W., Priem, R. L., Goranova, M. (In press). Does one size fit all? Investigating pay-future performance relationships over the “Seasons” of CEO tenure. Journal of Management, In Press., 2015.